Clear identity for impact investors
EVPA started 15 years ago with only a handful of venture capitalist who wanted to apply the spirit of investing in philanthropy. Now when you look around you’ll see foundations, impact funds accelerators and even government programmes moving into the direction of impact investing.
“Impact investing was a great term and created a lot of traction but we needed to define a clear identity,” says CEO and Board Member of EVPA, Steven Serneel.
It can mean many things from doing negative due diligence to philanthropic investments. In short, there are two main approaches:
Investing with Impact - Investors here have access to larger pools of resources but need to guarantee a certain financial return on their investments alongside the positive impact they have the intention to generate. The level of risk that investors with impact can take is often limited because of their mandates.
Investing for Impact - These investors are capital providers that take risks that no one else can take, putting the social purpose organisation (SPO) or the social innovation and the end beneficiaries at the centre. Investors for impact are, hence, those that apply more extensively the venture philanthropy approach including impact measurement and management, non-financial support and tailored financing.